5 Tips for Raising Funds for a Startup Project
We all have some ideas, be they meticulously planned out or half formed, for a company that we think could be successful. But who has the money to toss at a startup on a whim? Well, startups aren’t just for rich people with time to kill. Anyone can succeed with their startup, and that includes you. You just might need to do a little bit of fund raising first! But don’t worry, because we’re here to give you the top 5 tips for raising funds for a startup project.
Talk to Wealthy Family Members
Some people might instantly recoil at this suggestion and we understand why that is: pride. No one wants to ask their parents for a loan, much less their in-laws or their rich uncle. It makes us feel bad about ourselves—not to mention awkward. But sometimes you have to bite the bullet and make a few phone calls. It can make things better if you phrase your pitch as an investment opportunity and you give them stock in your company when it becomes available.
Take out a Loan
You might not consider this fund raising, but it’s a quick way to get money for your small business. You can sometimes get more than $100,000 for your small business if you’re lucky. The problem is making sure that you can pay it back on time and that you can deal with the inflation that often comes with loans.
Seek Government Funds
If you’re doing something with technology (or anything else that any government entity might find interesting) then you can apply for research grants and government funding. Just be careful about what you agree to. Sometimes government involvement can leave you with strings attached that limit what you can and cannot do with your business.
Turn to Crowd Funding
Crowd funding platforms like IndieGoGo and Kickstarter allow consumers to donate money to you for you to develop a product. It can be hard to run a campaign and to get people interested, but if you pull it off you might be able to walk away with hundreds of thousands of dollars! Some have even managed to raise more than $1,000,000 via crowd funding. Just be sure that you come up with some good rewards for those who back you and that you have the leftover funds to make good on them!
Pitch your Ideas to a Larger Company
Sometimes you can’t stay as independent as you’d like. It’s a sad reality of life. If all else fails you can still pitch your ideas to a larger company like Google or Facebook. Many large companies buy promising looking startups all the time! If you get really lucky you can keep control of your company even if you no longer technically own it. It isn’t the best situation to be in, but it isn’t the worst by any means. You can still make plenty of money when you’re owned by a larger entity !
As Startup Specialists we have used our knowledge and experience to set up a free portal of frank, accurate information. Do check out www.startupinthailand.com for more details on doing business in Thailand /Asia or for a free startup consultation.
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